HOW TO CHOOSE THE BEST LOW COST FRANCHISE IN INDIA?

Franchising is one of the popular ways of doing business. However, as it involves an initial investment as well as some running cost, the question arises how much can I invest in it. If our budget is not much then the question is can we do franchising with a low budget. The answer to this is, “YES”. What are the factors that I need to have in mind to decide what low budget franchising to choose. Below are certain guidelines that would help you to decide to choose a low cost franchising in India.

Decide on your budget

One of the very first things that you need to decide is what your budget is. How much can you invest in a franchising? The reason is because there are franchises starting from Rs.10,000/- to Rs.10 crores. Do remember that when you decide on your investment you not only have to have the initial royalty payment but also the percentage of continual monthly royalty payment according to the agreement in mind. When you start the franchising, it takes some time for the business to take off for which you need to keep some money aside.

Selecting the low cost franchise

The next process after deciding the budget is, you have to choose the low cost franchise. There are a few things that you would have to keep in mind and work towards to decide which franchise to take. The points of consideration are as follows: –

How to find information about low cost franchise?

Where can you find the information about the franchise with their cost is the question that comes to your mind? Well there are some websites available. You could type “Franchising websites in India” on google you would find some websites like the Franchise India, Franchise Mart, Franchise Bazar etc. one of the things that you could do is to see the LXR rating of the website. This would help you to know how good and reliable the website is. For example, Franchise India is a good and famous website with good LXR rating. They also have held a number of exhibitions in various parts of India. In these websites, you have the different franchises with their rates stated below each of the franchise industry. When you click on the franchise industry that you are interested in you will get details like the area required for the business, the initial royalty investment, franchise/brand fee, royalty/commission, where they have expanded, what all, information will be provided, like the property details, training details, agreement and term details. This would help you to decide which franchise you would like to choose based on your budget.

Which industry to select?

Once you know which website to look into remember there are many choices you have as far selecting the industry you want to buy the franchise. To give you an example, when you look into the Franchise India website you would find “SEARCH FOR BUSINESS OPPORTUNITIES”. Below that, you have three categories where in the first category you need to select the Industry, after that you select the Sector, finally you select the Service/Product. Therefore, you find so much of choice that you have. To give you some examples are like education, VR Business, food and beverages, business services, beauty and health, automotive etc. under these industries you have various sectors and services/products. Based on the information you can you can consider the below are a few more things to consider to decide on which franchise to buy.

What is the need or problem of the location?

The need or problem of the location plays an important role in your decision-making. If you provide some products or services that are not the need of the location then your business would be a failure. So you have to look into the need of the place. You might wonder how the “problem” of that location would help in you deciding. Well, Dr. Myles Munroe very rightly said that, “Every problem is a business opportunity.” A very good way to find out about the need or problem is by taking a survey of the location. You also need to see who are the different competitors in that locality, what loopholes they missed of which you can take advantage of, or you do not also leave those loopholes, the risk involved etc. Ultimately, you should remember that by you providing the needed services or products to the people of that locality it should enhance and develop their life, and then you would surely be successful.

What is your passion and capability?

Your passion and capability also needs to be considered if you are directly involved in the business. Can you do the job? Do I have the skills to do that work? If you are not passionate about the business you would not like to do the work. If you are not capable or skilled to do the work then you would have another investment to consider which is to hire or employ someone for the job.

What assets are involved?

When you want to decide on the franchise based on your low cost, you have to look into this matter of what assets are to be purchased because otherwise this would affect the running cost. If the assets to be purchased are more then, the running cost will be high, if it is less then, the running cost will be less. Therefore, there are such franchises where the assets involved are a lot and at the same time, there are such franchises where the assets involved are limited.

What are the agreement terms?

Every franchise has certain a big manual in which all the terms and conditions are stated. You need to carefully go through it. The best thing to do is always employ a professional for the same. They are experts and can give you the right guidance about the same. You need to look into the training programs that they provide, renewal terms, termination terms, from whom should the products be purchased, advertising assistance, meeting up with the existing franchisees etc.

I hope that these guidelines would help you to decide discretely which low cost franchise to choose and wish you all the best as you take steps to venture into this franchise business.

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